Ups Case Study

Question 1:

1990 – Launch of UPS Net, United Parcel Service’s (UPS) global network.

1993 – Launched Delivery Information Acquisition Device (DIAD)

1995 – Launched UPS webpage, and was one of the first companies to do so.

1996 – Launched tracking Application Program interface (API)

Introduced rates and services tool

2000 – Made six online tools available to customers.

Developed multiple web-supported products and services.

2000 – (August) Launched UPS e-logistics

Question 2:

Initially, UPS was confident in their delivery of parcels and didn’t see a need for introducing services that required investment in the IT sector of the business. CEO at the time, Oz Nelson decided to invest in information technology to remain competitive with similar businesses that were offering tracking capabilities to satisfy the demand from customers. Nelson decided to offer parcel tracking and introduce many different services that required $11 billion to implement. Frank Erbrick (CIO at the time) mentioned UPS’ motivation towards capitalising on this venture was largely aimed at remaining competitive with Federal Express’ air services, and preventing future loss in their daily ground business.

Question 3:

UPS’ ultimate business model involved a profit model that focused on keeping costs down to generate a greater revenue. Introducing IT initiates such as the DIAD, webpage, API and web based tools allowed resources such as time and labour to be better allocated. UPS is very much a customer orientated business and using the strategy of automation not only reduced cost for the business but it also reduced the transaction cycle, increased responsiveness and was more productive which was of more convenience to the customer.

UPS was also strategic in their collaboration with key vendors in the IT world. Agreements with global software vendors made UPS able to better handle and execute their business processes and made then a leading innovator in their field. This initiative...